Drawings A/C

[Shahid_fss]

Sometime drawings account becomes neccessory i.e interest on drawings. If we have not maintained a drawings a/c, we can't calculate interest on drawigs.
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As for P&l/Income summery, they are required to find out the profit (and many other things are related to them). Retained earnings account is also related with tax afairs.
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I would would also like to share with you people that it is not an item of balance sheet, is it? Cause it's a temrery accout (If we classify accounts according to P&L a/c and Balance Sheet then all Temp accounts are the members of P&L and all Permanent accounts are members of Balance Sheet). It goes to capital account and is automatically deducted.
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Mr. Maani said that it's not neccessory although bluewednesday's reasons are also strong but I agree with maani beacause if we don't use drawings a/c it will not effect the value of capital.
i.e
A firm's owner with a capital of 200,000 using derawings account draws 50,000 three times
Capital (Balance) = capital - drawings
50,000 = 200,000 - 150,000
A firm with same situation don't use drawings account
Capital (Balance) = Cr side - Dr side
50,000 = 200,000 - 150,000

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